Shares in Findel (FDL) fell 6 per cent after the online retailer revealed pre-tax losses had worsened considerably in the year to March 2017. This was primarily due to new bad debt provisions and redress costs for its mail order business Express Gifts, impairment of intangible assets in its education supplies business, and onerous lease provisions regarding its head office relocation: these delivered an £82.2m hit to the income statement. Management said the "judgemental issues" had to be addressed for the sake of customers.
In trading terms, Express Gifts fared the best with like-for-like product revenue up 15.6 per cent to £260m thanks to a strong performance in household items and clothing, along with a 229,000 increase in customers to 1.6m. Findel Education had a challenging year in a difficult market, which saw comparable sales fall 10.6 per cent as its schools brands lost market share: arresting decline there had been a priority.
Analysts at Stifel expect pre-tax profit of £28.6m in the year to March 2018, giving EPS of 23.1p.
| FINDEL (FDL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 190p | MARKET VALUE: | £164m | |
| TOUCH: | 185-193p | 12-MONTH HIGH: | 220p | LOW: 155p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 19p* | NET DEBT: | £225m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 491 | 0.5 | 3.4 | nil |
| 2014 | 468 | 5.6 | 4.5 | nil |
| 2015 | 407 | 0.5 | -5.6 | nil |
| 2016 | 411 | -1.7 | -1.9 | nil |
| 2017 | 457 | -59.4 | -66.9 | nil |
| % change | +11 | - | - | - |
Ex-div:na Payment:na *Includes intangible assets of £26.2m, or 30p a share | ||||
